The present invention concerns a portable cooler or ice chest having removable storage compartments for beverages or food items. An insulated compartmented ice chest is described in U.S. Pat. No. 3,395,550 which comprised a main compartment for ice and a side or auxiliary compartment for drinking water. Portable coolers with liquid dispensing capabilities are also described in U.S. Pat. Nos. 3,069,869, 3,664,643 and 3,572,054. U.S. Pat. No. 3,069,869, for example, shows a cooler which has removable upper and lower containers. The upper container holds dry ice and the lower container may hold liquids which may be carbonated in place.